1. Giggles most likely is not going to come anywhere close to raising what it needs to open a new location ($500k - $1M) from this crowdsourcing campaign.
2. The terms are awful and any astute investor would avoid this investment based on the risk/reward proposition, even without considering Joey Parsi's track record of overpromising and underdelivering, his incredibly inflated salary ($200k+ for running two locations!?), his lack of business acumen and foresight, etc.
3. I don't know how WeFunder works, but if Giggles is allowed to keep whatever it raises even if it isn't enough to open a new location, it is highly unlikely that money will be put aside for future expansion. More likely, it'll be spent (i.e. going to pay Joey and Phil's salary). They didn't return the offering money, did they? Even though it came nowhere near what they needed...
4. Current shareholders are going to be screwed. It's unfortunate, because this is a great concept that is being run by an absolute moron and someone who misrepresents the truth -- Joey said he was stepping aside as CEO, then came back a week later as co-CEO? If Phil Gay didn't have the time to fully commit as CEO, that would have been obvious from the start. Joey "stepped aside" because he had no other choice as investors clearly weren't participating in the offering with him in charge. But guess what -- that's what they got.
I want this to succeed but I wouldn't recommend that anyone get near Giggles n Hugs, except maybe to visit one of the locations. The stock is on the verge of delisting and it wouldn't surprise me if that's what Joey wants -- less paperwork and oversight.
If he wanted this to stay listed he would be buying shares by the handful at these prices. The fact that neither he nor Philip Gay have been filling out Form 4s is telling, isn't it? You'd think if Giggles were such a bargain at under a penny they'd be the biggest buyers -- but their lack of action speaks volumes.
